Download - Dole 2000 Annual
(in millions, except per-share data) 2000 1999 1998 1997 1996
Revenue $ 4,763 $ 4,794 $ 4,189 $ 4,065 $ 3,575
Net income $ 68 $ 49 $ 12 $ 160 $ 89
Diluted net income per common share $ 1.21 $ 0.85 $ 0.20 $ 2.65 $ 1.47Diluted average common shares outstanding 56 57 60 60 60
Total assets $ 2,845 $ 3,034 $ 2,915 $ 2,464 $ 2,487
Capitalization
Short-term debt $ 45 $ 39 $ 36 $ 14 $ 22Long-term debt 1,136 1,286 1,116 755 904Minority interests 45 49 57 38 30Common shareholders’ equity 555 532 622 666 550
Total capitalization 1,781 1,906 1,831 1,473 1,506
Book value per common share $ 9.93 $ 9.53 $ 10.49 $ 11.10 $ 9.18Common stock price:
End of year 16 3/8 16 1/4 30 45 3/4 34High 20 1/2 33 13/16 57 1/8 49 5/8 43 1/2
Low 1115/16 13 13/16 28 5/16 33 3/8 32 7/8
Annual cash dividends per common share 0.40 0.40 0.40 0.40 0.40
NOTE: Net income for 2000 includes a pre-tax charge of $46 million, net insurance proceeds of $43 million and a pre-tax gain of $9 million on assets sold. Net income for 1999 includes a pre-tax charge of $48 million and net insurance proceeds of $28 million. Net income for 1998 and 1996 includes pre-tax charges of $120 million, net of $23 million of insurance proceeds, and $50 million, respectively.
4,76300
3,57596
4,06597
4,18998
4,79499
32900
33896
37297
32898
30899
55500
55096
66697
62298
53299
REVENUE
(in millions)
CASH FLOW
(EBITDA* in millions)
SHAREHOLDERS’ EQUITY
(in millions)
•EBIT •Depreciation & Amortization
* Before special charges in 2000, 1999, 1998 and 1996, net insurance proceeds in 2000, 1999 and 1998, and a net gain on assets sold in 2000.
Dole Financial Highlights
To Our Shareholders
ull year 2000 net income from ongoing
operations, which excludes a business
downsizing charge, one-time gains from
asset sales and Hurricane Mitch insurance
proceeds, was $72.9 million, or $1.30 per
share, reflecting a 9% improvement in earnings per
share as compared to full year 1999 net income from ongoing
operations of $67.9 million, or $1.19 per share. Revenues for 2000
were slightly down at $4.76 billion versus $4.79 billion for 1999. Cash
flow from ongoing operations (EBITDA) in 2000 was $328.8 million
compared with $307.6 million for 1999.
Operations - While an improvement over 1999, our 2000 results weredisappointing. Earnings were down from our original plan due to a reduction in ourbanana business profits largely as a result of the drop in the euro to U.S. dollarexchange rate, a dramatic rise in fuel rates during the year, and a continuedoversupply of bananas in the market. Additionally, Dole’s flower operations havenot yet achieved the benefits of a full consolidation of the four companiespreviously acquired in that industry. Cost reduction programs have been put inplace in both our banana and flower businesses to improve performance in 2001.Our other businesses all performed quite well and are expected to continue to dowell in 2001.
Fresh Fruit - While banana pricing is not expected to improve in 2001, we have taken significant measures to reduce costs in this business including the areas ofproduction, shipping, selling, marketing, distribution and G&A activities. Webelieve these measures should result in meaningful improvement in the bananabusiness results in 2001.
Fresh Vegetables - Our fresh vegetables business posted record earnings in 2000 asa result of continued growth in the fresh-cut salads business and favorable pricing in the commodityvegetables business. Our fresh-cut salads business grew approximately 20% in 2000 and achieved a twelve-week market share of 37.2% by the end of the year. During 2001, we anticipate continued growth in ourfresh-cut salads business and a return to more normal pricing levels in our commodity vegetables business.
�Dole’s PremiumSelectTM Pineappleis sweet in taste andhigh in vitamin C.Grown in the Tropics,it is distinguished by its golden-yellow high shell color.
David H. MurdockChairman and Chief Executive Officer
F
Packaged Foods - Our packaged foods business also performed well and is expected to continue its growth in 2001. Our traditional canned pineapple business maintained its approximate 50% market share in North America, and our new FRUIT BOWLS® plastic cup introduction achieved sales of $70million in its first full year of roll out, an approximate 30% market share. These new products offer potentialfor future revenue and profitability growth.
Beverage - Our beverage business in Honduras returned to more normalizedconditions in the wake of Hurricane Mitch. As previously reported, we arepursuing a possible sale of this business. Proceeds from such a sale would beprimarily used to pay down debt.
Flowers - Our fresh-cut flowers business was only slightly profitable in 2000,but this was an improvement over the $5 million loss incurred in 1999. In 2001,we are working toward the consolidation of our Miami-based flowers operationsinto a new distribution facility which will be located near the Miami airport.This should improve costs, quality and service to our customers.
Financing Activities - In July 2000, we entered into a $250 million, 364-dayrevolving credit facility. Agents in the facility are Bank of America,Commerzbank and The Bank of Nova Scotia. Also in July, we repaid $225million, of our 6.75% notes which matured on July 15, 2000. These notes wererefinanced under our existing $400 million, five-year revolving credit facilityand the new 364-day facility.
Management Changes - In early 2001, Lawrence A. Kern was promoted toPresident and Chief Operating Officer and was appointed to the Board ofDirectors. Mr. Kern joined Dole in 1993, most recently serving as President of our worldwide freshvegetables and non-tropical fresh fruit operations. David A. DeLorenzo, former President and ChiefOperating Officer, was appointed Vice Chairman of the Board of Directors and will have a significant rolein guiding strategic initiatives aimed at enhancing shareholder value. Mr. DeLorenzo has served Dole invarious executive capacities since 1970. In October 2000, C. Michael Carter joined us as Vice President,General Counsel and Corporate Secretary.
We express our appreciation to our shareholders, employees, customers and suppliers for their continuedsupport and confidence.
Sincerely,
David H. MurdockChairman and Chief Executive Officer
�Dole Special Blendsare the fastest growing line of fresh-cut salads, combining over twentytypes of lettuces and vegetables in fourteen different salads to satisfyany taste preference. Dole offers a broad line,with both conventionaland organic varietiesavailable.
Dole Fresh VegetablesDole ArtichokesDole AsparagusDole Bell PeppersDole BroccoliDole Brussels SproutsDole Butter LettuceDole CarrotsDole CauliflowerDole CeleryDole CilantroDole Dry OnionsDole EndiveDole EscaroleDole Green Leaf LettuceDole Green OnionsDole Iceberg LettuceDole Idaho PotatoesDole RadishesDole Red Leaf LettuceDole Romaine LettuceDole Sugar PeasDole Tomatoes
Dole Fresh-Cut Vegetables
Dole All American Salad KitDole American Salad BlendDole Chopped
Romaine SaladDole Classic Cole SlawDole Classic Greek Salad KitDole Classic Iceberg SaladDole Classic Romaine SaladDole Caesar Salad KitDole Light Caesar Salad KitDole Creamy Garlic Caesar
Salad KitDole Romano Salad KitDole Sunflower Ranch
Salad KitDole European Salad BlendDole French Salad BlendDole Greener Selection® SaladDole Italian Salad BlendDole Just Lettuce SaladDole (Mediterranean) Leaf &
Escarole Salad Blend Dole Mediterranean Salad KitDole Organic Baby LettucesDole Organic Baby SpinachDole Organic Hearts of
Romaine MixDole Organic Spring Mix
with HerbsDole Peeled Mini-CarrotsDole Romaine Salad BlendDole Shredded CarrotsDole Shredded LettuceDole Shredded Red CabbageDole Spring Mix Salad BlendDole Triple Cheese Salad KitDole (Tuscany) Butter Lettuce
Salad BlendDole (Verona) Field Greens
Salad BlendDole Very VeggieTM
Salad Blend
Pascual HermanosDole Santa (Grape) TomatoesDole Cherry TomatoesDole On-Vine TomatoesDole Plum TomatoesDole Little Gem Baby LettuceDole Rucola SaladDole Mini Leaf SaladDole Spring Onions
Dole Dried Fruit & NutDole Dates Chopped in
Resealable BagsDole CinnaRaisins in
Resealable BagsDole Golden Seedless RaisinsDole Dates Pitted in
Resealable BagsDole Pitted Prunes CanisterDole Pitted Prunes in
Resealable BagsDole Seedless Raisins CanisterDole Seedless Raisins in
Resealable BagsDole Seedless Raisins
Mini SnacksDole Seedless Raisins
Six Packs
SamanDole Golden RaisinsDole Mixed Fruit & NutDole Pine NutsDole Soelia PistachiosDole Soft ApricotsGuyennoise Prunor
Pitted PrunesGuyennoise Prunor
Whole PrunesJA Whole DatesJA Whole PrunesSoelia Blanched Whole
AlmondsSoelia Dried ApricotsSoelia Dried FigsSoelia Pitted PrunesSoelia Sliced Thin AlmondsSoelia Whole PeanutsSoelia Whole PrunesDole Walnut HalvesWhole Deglet Nour Dates
Dole Fresh FruitDole ApplesDole ApricotsDole AvocadoDole BananasDole Banana Puree Dole BlackberriesDole CantaloupeDole CherriesDole ClementinesDole CoconutsDole CranberriesDole GrapefruitDole Gift BasketsDole GrapesDole Honeydew MelonDole KiwiDole LemonsDole Limes
Dole LycheesDole MandarinsDole MangoesDole Morado BananaDole Native BananaDole NectarinesDole OrangesDole PapayasDole PeachesDole PearsDole PersimmonsDole PineappleDole Fresh-Cut Pineapple
ChunksDole Fresh-Cut Pineapple
SpearsDole Fresh-Cut Pineapple
CylindersDole Plantains Dole PlumsDole PomegranatesDole RaspberriesDole SatsumasDole StrawberriesDole Super Sweet BananaDole TangelosDole TangerinesDole YuccaIndividually Quick Frozen
(IQF)Dole BananasDole MangoDole Pineapple
Dole Packaged FoodsDole Aloe Vera (Solid)Dole Apricot HalvesDole Apricot Snack CupDole Apricots in Juice
or SyrupDole Crushed Pineapple
in Juice or SyrupDole Deciduous Fruit
Cocktail in Juice and SyrupDole Fruit Bowls – Diced
PeachesDole Fruit Bowls – Mixed FruitDole Fruit Bowls – Pineapple
TidbitsDole Fruit Bowls – Tropical
Fruit SaladDole Fruit Bowls – Mandarin
Orange SegmentsDole Fruit Festival Snack CupDole Fruit in Gels –
Pineapple in Lime GelMandarin Orange in
Orange GelPeaches in Strawberry Gel
Dole Guava HalvesDole Guava in SyrupDole Longans in SyrupDole Longans Snack CupDole Lychees in SyrupDole Lychees Snack CupDole Mandarin Orange
Fruit CupsDole Mandarin Orange
SegmentsDole Mandarin Orange
Segments, Easy Open
Dole Mango Cubes Snack Cup
Dole Mango Juice DrinkDole Mango Slices in Blended
Juice or SyrupDole MushroomDole Nata de Coco in SyrupDole Nata de Coco
with Jackfruit Snack CupDole Papaya in SyrupDole Peach Halves in SyrupDole Peach Slices – Easy OpenDole Peach Snack CupDole Peaches in Juice
and SyrupDole Pear Snack CupDole Pears in Juice and SyrupDole Pine Orange
Banana JuiceDole Pineapple Chunks
in Juice or SyrupDole Pineapple ConcentrateDole Pineapple Cubes
in SyrupDole Pineapple Fun Shapes –
CosmicDole Pineapple Fun Shapes –
Sea CreaturesDole Pineapple Grapefruit
Juice DrinkDole Pineapple JuiceDole Frozen Pineapple JuiceDole Pineapple Juice DrinkDole Pineapple Lychee
Juice DrinkDole Pineapple Mandarin
Orange Banana JuiceDole Pineapple Orange JuiceDole Pineapple Orange
Juice BoxDole Pineapple Orange
Juice DrinkDole Pineapple Orange
Raspberry Juice BoxDole Pineapple Orange
Strawberry JuiceDole Pineapple Pink
Grapefruit DrinkDole Pineapple Slices
in Juice or SyrupDole Pineapple Snack CupDole Pineapple Snack Wedges,
Easy OpenDole Pineapple Strawberry
Juice DrinkDole Pineapple Tidbits
for PizzaDole Pineapple Tidbits
in JuiceDole Pouch – Pineapple
Tidbits in SyrupDole Rambutan in SyrupDole Rambutan Snack CupDole Rambutan with
Pineapple Snack CupDole Red Papaya Chunks
in Light SyrupDole Tomato SauceDole Tropical Fruit Cocktail
in Juice and Syrup
Dole Tropical Fruit Cocktail in Syrup with Passion
Fruit JuiceDole Tropical Fruit Juice BoxDole Tropical Fruit SaladDole Tropical Fruit Salad,
Easy OpenDole Tropical-Pineapple
Juice BlendDole White AsparagusDole Yellow Papaya Chunks
in SyrupSeasons Pineapple JuiceSeasons Tropical Fruit MixSun Giant Pineapple Slices
in Juice or SyrupSun Giant Pineapple Chunks
in JuiceSun Giant Crushed Pineapple
in JuiceSun Giant Pineapple Juice
Dole Fresh FlowersAgapanthusAlstroemeriaAster ButterflyAster MatsumotoAster MontecasinoBells of IrelandBouvardiaBupleurumCallasCampanulasCarnationsChinese CarnationsCremonsDelphiniumFarm BouquetsFootball MumsFreesiaGerberaGerspiderGypsophilaKangaroo PawsLeatherleafLiatrisLiliesLimoniumLisianthusMillion Stars GypsophilaMiniature CarnationsMonk’s HoodNerinesPomponsQueen Anne’s LaceRoses (Hybrid Tea)Roses (Micro)Rover MumsSnapdragonsSolidagoSolidasterSpider MumsSpray RosesStaticeStockStrawflowersSunflowersSweetheart RosesTracheliumTree FernYarrow
Dole Worldwide Product List
Dole Food Company, Inc.
Directors
Mike Curb 1, 3
Chairman
Curb Records, Inc.
David A. DeLorenzoVice Chairman
Dole Food Company, Inc.
Richard M. Ferry 1, 2
Chairman
Korn/Ferry International
(international executive search firm)
James F. Gary 2, 3
Chairman Emeritus
Pacific Resources, Inc.
Lawrence A. KernPresident and Chief Operating Officer
Dole Food Company, Inc.
Zoltan Merszei 2, 3
Former Chief Executive Officer,
President and Chairman
The Dow Chemical Company
David H. Murdock 1
Chairman of the Board and
Chief Executive Officer
Dole Food Company, Inc.
Dole Food Company, Inc.
Officers
David H. MurdockChairman of the Board and
Chief Executive Officer
David A. DeLorenzoVice Chairman
Lawrence A. KernPresident and Chief Operating Officer
Kenneth J. KayVice President and
Chief Financial Officer
C. Michael CarterVice President, General Counsel and Corporate Secretary
Patrick A. NielsonVice President – International Legal andRegulatory Affairs
George R. HorneVice President – Human Resources
Roberta WiemanVice President
James A. KennedyVice President – Taxes
Gil BorokController and Chief Accounting
Officer
Beth PotilloTreasurer
Dole Food Company
Operating Division Officers
Paul CuyegkengPresident – Dole Asia
William F. FeeneyPresident – Dole Europe
Juergen SchumacherPresident – Dole Latin America
Peter M. NolanPresident – Dole North America
Eric M. SchwartzPresident – Dole Worldwide Fresh Vegetables
Roberto ZacariasPresident – Dole Honduran Beverage
Lorenzo de la TorrePresident – Dole Fresh Flowers
Michael J. CavalleroPresident – Dole North America
Tropical Fresh Fruit
1 Executive, Finance and Nominating Committee2 Audit Committee3 Compensation and Benefits Committee
Directors and Officers
�Dole grows over 145varieties of roses, whichis only one of over 40flower types offered,helping make Dole theleading grower, mar-keter, and distributor of floral products.
DOLE® IS A REGISTERED TRADEMARK
OF DOLE FOOD COMPANY, INC.
©2001 DOLE FOOD COMPANY, INC.
ALL RIGHTS RESERVED.
The Company
Founded in Hawaii in 1851, Dole Food Company, Inc. is the largest
producer and marketer of high-quality fresh fruit, fresh vegetables
and fresh-cut flowers, and markets a growing line of packaged foods.
The Company does business in more than 90 countries and employs
approximately 61,000 full-time people.
Corporate Headquarters
One Dole Drive, Westlake Village, CA 91362 (818) 879-6600
Company and Shareholder Information
�Auditors
Arthur Andersen LLP
633 West Fifth Street
Los Angeles, CA 90071
Securities Transfer and Dividend
Disbursement Agent
American Stock Transfer
& Trust Company
59 Maiden Lane
New York, NY 10007
(800) 937-5449
Internet address: www.amstock.com
Dividend Information
A cash dividend of $0.10 per common
share was declared in each quarter
of 2000 for a total annual dividend of
$0.40 per share. Dole Food
Company, Inc. does not have a
dividend reinvestment plan.
Investment Community Inquiries
Members of the investment community
should direct inquiries to:
Office of the Chief Financial Officer
Dole Food Company, Inc.
One Dole Drive
Westlake Village, CA 91362
(818) 879-6600
E-mail address:
Shareholder Inquiries
For a copy of the Annual Report on
Form 10-K, or for other information
requests, shareholders should contact:
Office of the Corporate Secretary
Dole Food Company, Inc.
One Dole Drive
Westlake Village, CA 91362
Telephone (818) 879-6814
Facsimile (818) 879-6615
E-mail address:
Dole’s Annual Report on Form 10-K
is available on the internet at
http://www.dole.com
Stock Exchange
Dole Food Company, Inc.’s common
stock (DOL) is traded on The New York
and Pacific Stock Exchanges
Internet Addresses
http://www.dole.com
http://www.dole5aday.com
�Dole® Fruit Bowls® are bite-sized pieces of 100 percent natural fruit, convenientlypacked in clear, plastic bowlswith easy-to-open, peel off lids.Fruit Bowls‚ are available infive varieties: Diced Peaches,Mixed Fruit, Pineapple, Tropical Fruit, and Mandarins.This innovative new line ofproducts captured a 30% shareof the $200 million Fruit Cup category in 2000.
Available in the fall of 2001,The Encyclopedia of Foods: A Guide to Healthy Nutritionis a definitive resource on what to eat for maximum health. The book is part of Dole’s ongoing nutrition education program and provides a comprehensive, in-depth reviewof the role of nutrition in ourlives by nutrition experts fromMayo Clinic, University of California Los Angeles, andDole Food Company, Inc.